Q.Risk bearing theory of profit was propounded by the American economist __________ in 1907.

The risk-bearing theory of profit was propounded by F.B. Hawley (1907).

Among the theories of profit, the risk-bearing theory holds that profit is the reward earned by the entrepreneur for bearing the risks and uncertainties of running a business. Because production is undertaken in anticipation of future demand, the entrepreneur risks loss; profit compensates for shouldering this risk. This theory was advanced by the American economist F.B. Hawley in 1907.

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